The Smart Landlord’s Guide to Yields, Agent Fees & Letting Options

Choosing the right letting strategy isn’t just about rent—it’s about net yield, ongoing fees, and the true cost of agency involvement. With Homesty’s free calculators, you can now run the numbers yourself, compare options, and make smarter decisions for your portfolio.

Whether you're considering traditional agents, fixed-fee platforms, or short-term letting, here’s how to break down the key figures.

1. Start With Your Rental Yield

Your gross rental yield is the foundation of your decision-making. But gross yield alone doesn’t tell the full story—it ignores costs like agent fees, insurance, and maintenance.

Use the Rental Yield Calculator > to:

• Plug in your property price, monthly rent, and any ongoing costs

• Instantly see your gross and net yields

• Compare what happens if you reduce agency fees or go fixed-fee with Homesty (£40 per tenancy)

🔍 A typical example:
£250,000 property, £1,200/month rent
→ Gross Yield = 5.76%
→ Net Yield (with agent) = 4.38%
→ Net Yield (with Homesty) = 4.94%

Over time, that gap compounds—especially across multiple properties.

2. Compare Agency Fees

Traditional letting agents often charge 10–15% of your rent, every single month—plus extra renewal or admin fees. That might seem worth it at first, but the cost scales with your success.

Use the Agent Fee Calculator > to:

• Input your annual rent

• Choose a percentage-based fee vs fixed fee

• See your annual savings, 10-year savings, and even 25-year savings

📊 Example:

• Agent at 10% on £14,400/year rent = £1,440/year

• Homesty fixed fee = £40/year

• £1,400 saved per property, per year

• Over 25 years = £35,000+ saved

Those savings could fund another deposit or a full refurb.

3. Weigh Up Short-Term Letting vs Agents

Short-term letting (e.g. Airbnb) can bring higher gross income, but with higher management costs, cleaning fees, and vacancy gaps.

Use our Short-Term vs Letting Agent Calculator > to:

• Compare monthly income potential

• Add in costs like insurance, cleaning, and void periods

• Understand whether the extra effort really delivers higher net profit

🏖 Short-term lets may shine in tourist areas—but for long-term security and passive income, many landlords prefer the stability and predictability of person-to-person tenancies.

Final Thought: Let the Data Drive the Decision

Every property is different. But too often, landlords rely on assumptions, not numbers. By using Homesty’s suite of tools, you can:

✅ Compare real-world outcomes
✅ See where your money is going
✅ Decide what letting strategy works for you

The right move might not be traditional—and that's the point.

🔍 Try the Tools:

• Rental Yield Calculator >

• Agent Fee Calculator >

• Short-Term Let vs Letting Agent Calculator >